A property developer who falsely accused his neighbour's son-in-law of a racist assault in a row over a new driveway smirked yesterday as he walked free from court.

Sanjay Chaddah concocted a 'tissue of lies', claiming Dean Paton had kicked him and called him a 'P**i' following the 18-month boundary dispute in a genteel village in the Wirral.

But the move backfired when police discovered that the altercation had been caught on CCTV and cleared Mr Paton of any wrongdoing.

Yesterday Chaddah, 43, who claimed he was suffering from post-traumatic stress, punched the air with delight as he strolled free from court after being given a six-month suspended sentence for common assault and perjury.

Liverpool Crown Court heard he had been embroiled in an ongoing spat with neighbours Steve and Tricia Boden after he dug up part of the block paving on their drive to make way for an ornate wall and railings around his home in Raby Mere.

Despite their objections, he carried on transforming his modest £300,000 four-bedroom detached home into what residents in the upmarket village describe as a 'Bollywood palace'. Things came to a head in July when Chaddah and his wife Deepa spotted their neighbours' son-in-law Mr Paton moving a fence panel on the day their new driveway was being laid.

Chaddah was so incensed he charged at Mr Paton, 31, and knocked him over.

Police were called and Chaddah falsely accused the archaeologist of racially aggravated assault, only to be caught out by frame-by-frame footage from his neighbours' CCTV cameras.

Last night Mr Paton said he was relieved the case was finally over. But he added: 'If I'd been prosecuted for racially aggravated assault you can bet I would have ended up in jail, not with a suspended prison sentence.

'I'm married with two kids but would have lost my business and my livelihood. Being branded racist – I couldn't really have been accused of anything worse.

'Chaddah is a bully who had to be told he couldn't take the law into his own hands.'

Another neighbour said: 'Everyone's had problems with them (the Chaddahs). They've built this Bollywood-style palace for themselves and don't give a monkey's about others in the street not being able to get in and out of their drives for builders.'

The court heard the dispute began when Mr and Mrs Boden, both 61, returned from a two-week holiday to Cuba to find their block paving had been dug up to make way for the Chaddahs' new 3ft tall wall and railings.

Around 18 months later, Mr Paton, who was visiting his in-laws, tried to remove a fence panel the Bodens claimed was sticking out on to their property. Chaddah charged at Mr Paton, catching the taller man side-on and knocking him over.

CCTV: Chaddah (top) attacks Mr Paton in the footage which cleared Mr Paton of any wrongdoing

The disputed fence which led to the incident. Mr Chaddah's home is on the left

Police were called and Chaddah invented the assault, adding: 'He kicked my leg and punched me to the side of the face.' William Beardmore, prosecuting, said: 'It was a tissue of lies.'

Judge Mark Brown said the offence was particularly serious because Chaddah had claimed the 'assault' was racially motivated. He told the father of two: 'Society has an abhorrence of those who use racist remarks. By making that allegation against Mr Paton you put him in a very difficult position.'

He ordered Chaddah, who pleaded guilty, to complete 120 hours' of unpaid work, pay his victim £250 compensation and pay £300 in costs. John Weate, defending, said Chaddah was sorry, adding: 'He did the wrong thing.'